Wasendorf, Sr. to be released from jail ahead of sentencing - KWWL - Eastern Iowa Breaking News, Weather, Closings

Wasendorf, Sr. to be released from jail ahead of sentencing

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  • Russ Wasendorf Sr. and PFG

    Russ Wasendorf Sr. and PFG

    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
CEDAR RAPIDS (KWWL) -

In court documents filed on Thursday, a judge has authorized that Russell Wasendorf, Sr. be released from jail until his sentencing.

A plea change hearing has been set for Monday when Wasendorf, Sr. is expected to change his plea to guilty on four charges detailed in a plea agreement.

After changing his plea on Monday, Wasendorf will be released until his sentencing. He will be restricted to the home of Kurt and Linda Livingston in Marion. He has surrendered his passport and will wear a GPS monitoring device. The Livingstons are friends of Wasendorf and his wife Nancy Paladino. Linda Livingston has visited Wasendorf at the Linn County Jail several times a week since he was arrested.

According to the court document, Nancy Paladino has been living with her sister in Chicago, but has visited Wasendorf and talks to him often. Paladino filed for an annulment, claiming they were married under false pretenses. The two wed in Las Vegas just nine days before Wasendorf attempted to commit suicide and left a confession detailing more than 20 years of fraud at his company Peregrine Financial Group.

Linda Livingston has testified that Paladino filed the annulment for legal reasons, but plans to stay in Marion with Wasendorf during his release. Paladino wrote to Wasendorf's lawyer that she has not given up on the relationship.

As part of the plea deal, Wasendorf, Sr. will plead guilty to mail fraud, embezzling customer funds and two counts of making false statements to regulators. Prosecutors say Wasendorf could be sentenced to up to 50 years in prison.

After a federal investigation was initiated, it was released that as much as $200 million in customer segregated funds are missing from the financial company.

Peregrine Financial Group has since filed for bankruptcy.

Wasendorf was charged with 31 counts of using false documents. He had previously pleaded not guilty to the charges.

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